How to prepare for your mortgage application

Since the introduction of the Mortgage Market Review (MMR) in April 2014, many homebuyers have been confused by the changes and what they need to do before they make a mortgage application.

Without the right preparation you could be joining the 12% who were unable to secure the size of mortgage they needed, or the 5% who did not meet the criteria outlined by lenders, according to a report commissioned by Experian in April 2015.

The size of your deposit will often dictate how much you face in terms of interest rates and lender fees. Consider what funds you can draw together to form your deposit as early as possible, as you might need to save for longer than you thought!

2. Conduct thorough research

Speak to an expert mortgage adviser who has access to the access to 1000's of mortgage products from over 90+ lenders across the UK, as they can give you a better idea of what type of mortgage will suit your circumstances. Calculate what you can afford to borrow and repay at the current rates and if they rise. If you’re not sure where to start your mortgage adviser can do this for you.

By scrutinising your last six months’ outgoings you can fully understand where your money is going. Start building good habits such as putting a set amount of money each month into a savings account, clearing any overdrafts, and cutting back on treats to ensure you have a small amount of money left at the end of every month.

4. Check your credit rating

As soon as you have decided to buy, check your credit report with all three UK credit reference agencies (Callcredit, Equifax and Experian). Again, your mortgage adviser can help you on how to go about this.

If you spot anything inaccurate, no matter how small, contact the relevant credit reference agency and ask them to investigate the entry with the lender.

5. Make improvements

Ensure your credit report is in the best shape possible before you make your mortgage application. There are a number of steps you can take to make improvements, such as ensuring you’re registered on the Electoral Roll; paying down outstanding balances to less than 50% of your limit; paying off more than the minimum repayments on your credit cards and making sure never to miss a repayment.

Romans Mortgage Services advisers have years of experience in assessing the marketplace and use their expertise to choose the most suitable lender for each customer which means it's much more likely that their application will be successful the first time.

To find out more and book an appointment with a local adviser phone 0118 3219 536 or visit: romans.co.uk/mortgages.

Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.